But now market mechanisms were disorderly coming back to Russia. Municipal deficits grew higher and higher. In many city budgets subsidies to district heating were more than half the budget expenses, in some places in North West Russia more than 90 percent. Since citizens were used not to pay, or pay very little for municipal services, it was considered politically impossible to raise tariffs. A fine illustration of the term 'not sustainable'.

In between diapers the phone rang. It was suggested I work with a Swedish investment programme for district heating in NW Russia.

Some interesting years followed with visits to all major and many not so major cities in North West Russia. Over the years it became evident that administrative structures and regulations hampered development. Still today the system does not encourage the entities that should take the necessary efficiency measures, to do so. But improvements have been made, tariffs for all municipal services have increased. Apartment owners' associations, 'TeseZhe' seem to become an important player in a long term set up of rules.

Ukraine 2007. Huge increases in gas and other energy prices. Impossible to transfer full cost directly to the apartment owners. Subsidised tariffs especially in district heating are an enormous burden for public financing. 'OSBBs' are being created to organise apartment owners better. Will the political forces create conditions for a badly needed country wide energy efficiency improvement. A wish for 2008.